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Sep 30, 2023
Molson Coors Q3 2023 Earnings Report
Delivered top-line growth and increased income before income taxes.
Key Takeaways
Molson Coors reported strong Q3 2023 results, with net sales increasing by 12.4% and income before income taxes increasing by 99.3%. The company is reaffirming its top-line guidance and raising its underlying income before income tax guidance for the full year 2023.
Net sales increased 12.4% reported and 11.0% in constant currency.
Net sales per hectoliter increased 8.9% reported and 7.6% in constant currency.
U.S. GAAP income before income taxes increased 99.3% reported.
Underlying diluted EPS of $1.92 per share increased 45.5%.
Molson Coors
Molson Coors
Molson Coors Revenue by Segment
Revenue by Segment
Americas Revenue
CapyFin.comEMEA&APAC Revenue
CapyFin.com Forward Guidance
Molson Coors is reaffirming its top-line guidance but anticipates it at the high end of the range and is raising its underlying income before income tax guidance for the full year 2023.
Positive Outlook
- U.S. beer category being healthier than projected
- Stronger than expected brand volume growth
- Pricing across the Company's global markets, in particular Canada, is better than previously expected.
- Lower net interest expense
- Higher than previously anticipated cash balances generating higher interest income
Challenges Ahead
- Mid single-digit growth for the fourth quarter on a constant currency basis as we will lap higher than typical pricing taken in late 2022.
- Brand volume growth to outpace financial volume growth due to U.S. breweries shipping above expectations in the third quarter resulting in healthy distributor inventories and planned downtime in the U.S. network for system maintenance.
- Financial volume headwind as the wind down of a large and low-margin contract brewing agreement accelerates in the fourth quarter.
- High single-digit decrease for the fourth quarter on a constant currency basis, including mid single-digit top-line growth.
- Increase in underlying COGS per hectoliter due to continued high inflation in EMEA&APAC and lower volume leverage than the prior two quarters.
Revenue & Expenses
Visualization of income flow from segment revenue to net income